Have you ever heard of a CEO cutting his salary by $930,000 so his workers can earn more money?
Meet Dan Price, CEO of Gravity Payments, a credit card payment processing company based in Seattle, Wa.
Price recently announced that he would be giving himself a drastic pay cut to help cover the cost of big raises for his employees. Prior to the deduction his salary was roughly $1 million. He’s now only making $70k, that’s how much he wants to ensure each of his employees are making within the next three years.
That’s not where his generosity stops. According to the NY Post, Price is on his way to adopting a policy which allows his employees to take unlimited paid vacation after their first year with the company.
He says he believes this is just what everyone deserves.
Aware of the toll these changes will take on the company, Price acknowledges that the increased pay alone will cut into at least half of the company’s profits; even still he has no intentions to raise clients’ rates.
Price has already gotten some new customers out of the deal! Stefan Bennett, a customer relations manager at the company says, “we’ve already gained a handful of customers in the last day or two…we’re showing people you can run a good company, and you can pay people fairly, and it can be profitable.”
Prices gesture is extremely uncommon, there’s question of whether or not this will be a future trend.
For a company he started at 19 in his dorm room, he’s expressing true sacrifice and passion. Can we get a job !
Source sited: NY Post, http://nypost.com/2015/04/16/
p class=”MsoNormal”>TSR Intern: Chantel P. IG: @_POPchanny | Twitter: @POPchanny